Legal FAQs
Key Considerations When Deciding Where To Incorporate
How To Incorporate a Delaware C Corp Through Clerky?
How are SOSV Program Investments Made?
What Is A SAFE?
What Does Post-Money Mean?
How Does a Post-Money Fixed Percentage SAFE Convert to Equity?
Structure of the SOSV Program Investment
Cash SAFE
Program SAFE
Additional Cash SAFE
Cash Amount
Conversion – Valuation Cap Or Discount?
What Events Trigger Conversion of Investment to Equity?
What is an Equity Financing?
What Calculation is Used to Determine the Number of Shares Issuable to the Investor Upon Conversion of the Cash SAFE?
What is an Optional Conversion?
What is a Liquidity Event?
What is a Dissolution Event?
What is a Review Conversion
What is a Pro Rata Right?
What is a Most Favored Nations Clause?
What Is an Employee Share Option Plan (ESOP) or Unissued Option Pool?
Can the Cash SAFE be Assigned?
The Cash SAFE cannot be assigned by the Company without SOSV’s express prior consent.
SOSV can assign the Cash SAFE amongst its “Affiliates” as defined in the SAFE. Simply put, SOSV will not assign the Cash SAFE to any party outside the SOSV group. SOSV invests in companies via a certain fund and from time to time SOSV may have to assign certain investments between those internal funds or companies.